What are some of the downsides of private real estate investing?

What are some of the downsides of private real estate investing?

One of the most significant downsides of real estate investing is that your investment is not liquid. In other words, you must commit your money for a period of years. It’s not like the stock market where you can trade in and out quickly.

Only consider making an investment if you can leave your funds invested for several years or decades.While this is a potential negative, this can also be a positive. The investment requires you to commit your money for years to come, not days.

As a result, you benefit more from compounding interest.